February 9, 2026

The market may have reached a temporary bottom, meaning that the 60,000 Bitcoin and 1,800 Ethereum could become important support levels in the upcoming one to two months. This judgment is not only based on the recent sharp decline in the market but also supported by significant logical backing. The recent plunge in Ethereum was accompanied by the forced deleveraging and liquidation of the Yilihua Fund, which means that a large amount of Ethereum—worth hundreds of millions—was sold, likely triggering panic selling among many investors. This is the direct reason why Ethereum dropped over 30% in just a few days.
Additionally, according to industry rumors, the main investor behind Yilihua's fund is a major Bitcoin holder. Reliable information suggests that this investor went to jail over a decade ago for some misconduct. After being released, they held Bitcoin passively and became a free holder of multiple coins. However, they didn't want to hold Bitcoin passively and instead started to leverage Ethereum. Ultimately, they were forced to sell Bitcoin to cover their margin calls.
In fact, the price action of Bitcoin's candlestick chart also shows that after breaking below 70,000, the price quickly plunged to 60,000 USD. After a massive drop, Bitcoin's price was supported and rebounded within a few hours, eventually quickly reclaiming 70,000. This rapid decline hasn't been seen in a long time and clearly indicates that large investors were forced to sell—unplanned sales—causing this situation, which aligns with the circulating rumors.
In reality, every bear market must involve large capital sacrifices. Previously, it was exchanges, wallet financial products, and other institutions; this time, it is the fund. Even if it isn't a major holder, it must be a large investor being forced to sell. From both a logical and market pattern perspective, this makes sense and is a necessary part of every bear market. Our task is to stay calm during these panic-driven declines and to try to acquire bloodied chips as much as possible.
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